Thanks to independent think tank Open Europe, free trade and pro-markets
politicians like George Osborne can now criticise Brussels with a real
chance of being listened to

George Osborne knew it was a tall order issuing an ultimatum on European reform, so little wonder that he lent on Mats Persson for support. The 6ft 7in former basketball player is the director of Open Europe, the London-based think tank that co-organised last week’s summit on European Union reform in London.

The praise was perhaps slightly awkward for Persson, who runs a fiercely independent think tank. But the reality is that Open Europe has emerged as a powerful force in the formation of Coalition’s policies.

The Chancellor declared that Europe’s treaties were “not fit for the purpose”. “If we are going to create jobs and provide economic security, we need major reform,” he argued. And, crucially, without reform he said Britain could “face a choice between joining the euro or leaving” the EU.

It was all good fodder for Tory MPs who are desperately fighting the onslaught of Ukip.

A few years ago, the views would have been considered a long way to the right politically and possibly disastrous economically. But, thanks to Open Europe and others, there is increasingly a solid and practical case for reform. Free trade and pro-markets politicians like Osborne can now criticise Brussels with a real chance of being listened to.

“The point of the conference was to unite European reformers,” Persson said. “We are encouraged to have the ear of the UK government, but the aim is to try to get a pan-European debate going about substantial ideas.

“Too often discussion on EU reform becomes a shouting match, but the conference showed that when reformers sit down and talk about policies, they have a surprising amount in common.”

Open Europe was set up by leading UK business people to “contribute positive new thinking to the debate about the future direction of the EU”. Its vision is for a “slimmed-down, outward-looking EU” that encourages free trade, regulates less and is flexible about control of local issues.

Under Persson, the think tank has expanded to include an office in Brussels and Berlin.

In the UK, Open Europe holds the secretariat for the All Party Parliamentary Group on EU Reform. It is also closely associated with Fresh Start, the group of reforming Tory MPs chaired by Andrea Leadsom, which co-sponsored the conference.

Open Europe has developed a reputation for coming up with practical solutions. Last year, it published a report on free movement in the EU, which proposed simple changes to the availability of benefits rather than trying to block the immigration of Romanians and Bulgarians.

Another report on the EU services sector formed a key building block for the practical reform of the single market discussed at the conference. Osborne expressed frustration that, despite numerous leaders’ meetings to discuss advancing the single market, “precious little” has ever come of them.

“We need to stop talking about completing the single market in services, energy and digital, and get on with it,” he said. “We need to come up with innovative ideas to overcome the vested interests that are holding back progress.”

Osborne said he backed Open Europe’s ideas for using the principles of enhanced co-operation that allow smaller groups of member states to unite over a common cause. He said it could be used “to allow a smaller group of member states to move toward trade liberalisation in areas like services among themselves if not all states can agree”.

The Chancellor continued: “If enhanced cooperation can be used by others to create expensive job-destroying ideas like a Financial Transaction Tax, why don’t we think about using it for job-creating measures that others oppose?”

Persson said: “In the discussions later, representatives from Sweden, Portugal and UK all spoke about the liberalisation of the single market. There was a real sense of determination to change.”

Delegates found common frustration in European legislation and red tape. “A German representative said Brussels should follow the UK with a one-in-one-out rule”, said Persson. “Or even better, one-in-two-out rule.”

There was also backing for an overhaul of regional subsidies in the EU. More than a third of the total budget is spent on transferring funds to regions. But with no clear focus on poorer areas, in practice vast amounts are transferred between rich areas. “If the regional support were limited to poorer areas, less money would be transferred and the UK would save about £4bn over seven years,” said Persson.

He said Open Europe, after sifting through the products of two days of talks, would publish a list of “conclusions” it is hoped will form a fuller manifesto for change.

But before the conference ended, there were signs of a united purpose. MEP Rachida Dati, the former French justice minister who is now vice-president of Nicolas Sarkozy’s UMP party, told delegates: “A man in Europe has been bold enough to stand alone in calling for a different Europe. That man is David Cameron. Though at times isolated and shunned, he has stood his ground and … this idea, this wonderful idea of a people’s Europe, has started to gain momentum - even in Brussels. Quite an accomplishment.”